Constellation Brands (STZ) Gains As Market Dips: What You Should Know
In the latest trading session, Constellation Brands (STZ) closed at $227.26, marking a +1.06% move from the previous day. This change outpaced the S&P 500's 1.38% loss on the day. At the same time, the Dow lost 1.26%, and the tech-heavy Nasdaq lost 5.67%.
Prior to today's trading, shares of the wine, liquor and beer company had gained 2.4% over the past month. This has outpaced the Consumer Staples sector's loss of 2.3% and lagged the S&P 500's gain of 3.87% in that time.
Constellation Brands will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.91, down 19.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.01 billion, down 4.36% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.64 per share and revenue of $9.47 billion, which would represent changes of +4.31% and +7.31%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Constellation Brands. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. Constellation Brands is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Constellation Brands is currently trading at a Forward P/E ratio of 21.13. Its industry sports an average Forward P/E of 21.09, so we one might conclude that Constellation Brands is trading at a premium comparatively.
Also, we should mention that STZ has a PEG ratio of 2.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Beverages - Alcohol was holding an average PEG ratio of 2.09 at yesterday's closing price.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Constellation Brands Inc (STZ) : Free Stock Analysis Report
